Economy of California

The economy of California is a dominant force in the economy of the United States, with California paying more to the federal system than it receives in direct monetary benefits. [http://www.calinst.org/pubs/balance2003.htm California's Balance of Payments with Federal Treasury]

Economic regions

California is also the home of several significant economic regions such as Hollywood (entertainment), the California Central Valley (agriculture), Tech Coast and Silicon Valley (computers and high tech), and wine producing regions such as the Napa Valley, Sonoma Valley and Southern California's Santa Barbara and Paso Robles areas.

ectors

In 2002, the U.S. government adopted an updated system of classifying economic activities (called the North America Industry Classification System, or NAICS), to better reflect today's economy. [ [http://www.census.gov/epcd/www/naics.html U.S. Census Bureau: North American Industry Classification System (NAICS)] ]

In terms of jobs, the largest sectors in California's economy as of 2006 are:
* Trade, Transportation and Utilities: Wholesale and Retail, Import-Export businesses, Warehousing, etc.
* Government
* Professional and Business Services: Management of Companies and Enterprises; Legal, Scientific and Technical Services; Administrative and Support Services
* Education, Health and Other services
* Leisure and Hospitality: Tourism, Arts, Entertainment, Recreation, Food Services
* Manufacturing: Computers and Electronics, Aerospace, Apparel, Oil, other
* Financial Services: Finance, Insurance, Real Estate
* Construction
* Information: Motion Picture Production, Broadcasting, Publishing, Internet businesses and Telecommunications
* Agriculture and Mining

In terms of output, the largest sectors are:
* Financial Services
* Trade, Transportation and Utilities
* Education, Health and Other services
* Government
* Manufacturing
* Professional and Business Services
* Information
* Leisure and Hospitality
* Construction
* Agriculture and Mining

California draws significant revenue from international trade and tourism. The exports of goods made in California totaled $134 billion in 2007. $48 billion of that total was computers and electronics, followed by transportation, non-electrical machinery, agriculture, and chemicals. California trade and exports translate into high-paying jobs for over one million Californians. According to the U.S. Department of Commerce, Bureau of Economic Analysis, in 2005, foreign-controlled companies employed 542,600 California workers, the most of any state. Major sources of foreign investment in California in 2005 were Japan, the United Kingdom, Switzerland, France, and Germany. Foreign investment in California was responsible for 4.2 percent of the state's total private-industry employment in 2005. [ [http://www.calchamber.com/CC/BusinessResources/InternationalResources/AllAboutInternationalTrade/TradeStatistics.htm California Chamber of Commerce: All About International Trade and Investment] ] Total direct travel spending in California reached $96.7 billion in 2007, a 3.6% increase over the preceding year. [ [http://www.visitcalifornia.com/AM/Template.cfm?Section=California_Statistics_and_Trends&Template=/TaggedPage/TaggedPageDisplay.cfm&TPLID=6&ContentID=6675 California Statistics & Trends: Economic Impact of Travel in California] ]

Agriculture (including fruit, vegetables, dairy, wine and illegal cannabis production) is a major California industry. In 2004 agriculture brought in $31.68 billion in revenue, making it more than twice the size of any other state's agriculture industry. In fact, California is the world's fifth largest supplier of food and agriculture commodities.ref|CDFA Agriculture accounts for just slightly over 2% of California's $1.55 trillion gross state product.

Oil drilling has played a significant role in the development of the state. There have been major strikes in the Bakersfield, Long Beach, Los Angeles and off the California coast.

Historically, California's economy has been controlled by huge corporations such as the Southern Pacific Railroad, Standard Oil of California and the Pacific Gas and Electric Company.

Gross domestic product (GDP)

California is responsible for 13% of the United States' gross domestic product (GDP). The state's GDP is at about $1.7 trillion (as of 2006).

The GDP increased at an annual rate of 3.1% in the first quarter of 2005.ref|GDP

California's gross state product

According to the California Department of Finance, California's gross state product is $1.543 trillion.*cite web | title=Gross State Product, California (.xls) | work=California Department of Finance | url=http://www.dof.ca.gov/HTML/FS_DATA/LatestEconData/Data/Miscellaneous/Bbgsp.xls | accessdate=2005-08-17]

According to the Bureau of Economic Analysis, California's gross state product is $1.727 trillion (2006 data, last updated Thursday, June 07, 2007).ref|bea

According to the California Legislative Analyst's Office, "California's gross state product is nearly $1.5 trillion..." ("Gross product in 2003", released in 2004).ref|econ

However, in the 2007 Goldman Sachs analyst survey, California posted record GDP of 67% of the US GDP.

California as an independent nation

:"See also Comparison between U.S. states and countries nominal GDP"The economy of California is often cited for how it would compare to other countries if California was an independent nation. The statistic quoted varies widely (usually placing California between 7th and 10th)ref|factbookref|econref|worldranking, depending on the source, but also depending on the year. The most recent estimates (provided by the CIA's Factbook) put California tenth.

The two main issues are:
#determining California's gross state product
#determining the gross domestic product (GDP) for various countries

Rankings from different sources

Per capita personal income

Per capita personal income was $38,956 as of 2006, ranking 11^th in the nation.ref|PCI Per capita income varies widely by geographic region and profession. The Central Valley has the most extreme contrasts of income, with migrant farm workers making less than minimum wage. While some coastal cities include some of the wealthiest per-capita areas in the U.S., notably La Jolla near San Diego, Beverly Hills, in Los Angles County, Newport Beach in Orange County in Southern California, San Francisco and Marin County; though the most expensive and largest housing markets in the U.S. are in the state of California, so there are a number of many other communnities where average housing prices hoover between US$1-2 million; generally the Central Valley in northern California is the least expensive area, as is the Inland Empire in Southern California; though prices in the Inland Empire, though falling, are still much higher when compared to the Central Valley, to the point that there are also communities in this area where housing prices also averages around the $1 million mark; the agricultural central counties have some of the highest poverty rates in the U.S. The high-technology sectors in Northern California, specifically Silicon Valley, in Santa Clara and San Mateo counties, are currently emerging from economic downturn caused by the dot-com bust, which caused the loss of over 250,000 jobs in Northern California alone. Recent (Spring 2005) [http://uclaforecast.com economic data] indicates that economic growth has resumed in California, although still slightly below the national annualized forecast of 3.9%. The international boom in housing prices has been most pronounced in California, with the median property price in the state rising to about the half-million dollar mark in April 2005.

Tax burden

California's overall tax burden of $10.66 per $100 of personal income is slightly above the $10.43 average for the United States.ref|CalFactsSLF

Housing

The international boom in housing prices has been most pronounced in California, with the median property price in the state rising to about the half-million dollar mark in April 2005. Orange County, Ventura County and the San Francisco Bay Area have the highest median prices, each approaching $650,000.ref|econ The least expensive region is the Central Valley, with a median price of $290,000.ref|econ

Various real estate markets in California are currently considered to be in a housing bubble.

However, beginning in 2007 with the Credit Crunch in the banking system, thousands of homes have been foreclosed statewide, thereby plummeting home prices.

25 wealthiest places in California

Thanks to the state's powerful economy, certain California cities are among the wealthiest on the planet. The following list is ranked by per capita income:

# Belvedere, California – Marin County – $113,595
# Rancho Santa Fe, California – San Diego County – $113,132
# Atherton, California – San Mateo County – $112,408
# Rolling Hills, California – Los Angeles County – $111,031
# Woodside, California – San Mateo County – $104,667
# Portola Valley, California – San Mateo County – $99,621
# Newport Coast, California – Orange County – $98,770
# Hillsborough, California – San Mateo County – $98,643
# Diablo, California – Contra Costa County – $95,419
# Fairbanks Ranch, California – San Diego County – $94,150
# Hidden Hills, California – Los Angeles County – $94,096
# Los Altos Hills, California – Santa Clara County – $92,840
# Tiburon, California – Marin County – $85,966
# Sausalito, California – Marin County – $81,040
# Monte Sereno, California – Santa Clara County – $76,577
# Indian Wells, California – Riverside County $76,187
# Malibu, California – Los Angeles County – $74,336
# Del Monte Forest, California – Monterey County – $70,609
# Piedmont, California – Alameda County – $70,539
# Montecito, California – Santa Barbara County – $70,077
# Palos Verdes Estates, California – Los Angeles County – $69,040
# Emerald Lake Hills, California – San Mateo County – $68,966
# Loyola, California – Santa Clara County – $68,730
# Blackhawk-Camino Tassajara, California – Contra Costa County – $66,972
# Los Altos, California – Santa Clara County – $66,776

"See complete list of California locations by per capita income"

30 poorest places in California

Also, due to California's considerable and increasing wealth disparities, many communities are among the poorest in the western world. The following list is ranked by increasing per capita income, first number is state ranking:

1076 Tobin, California – Plumas County – $2,584
1075 Belden, California – Plumas County – $3,141
1074 East Orosi, California – Tulare County – $4,984
1073 London, California – Tulare County – $5,632
1072 Cantua Creek, California – Fresno County – $5,693
1071 Indian Falls, California – Plumas County – $5,936
1070 Westley, California – Stanislaus County – $6,137
1069 Cutler, California – Tulare County – $6,254
1068 Mecca, California – Riverside County – $6,389
1067 Richgrove, California – Tulare County – $6,415
1066 San Joaquin, California – Fresno County – $6,607
1065 Woodville, California – Tulare County – $6,824
1064 Kennedy, California – San Joaquin County $6,876
1063 Mettler, California – Kern County – $6,919
1062 Mendota, California – Fresno County – $6,967
1061 Terra Bella, California – Tulare County – $7,034
1060 Parlier, California – Fresno County -$7,078
1059 Orange Cove, California – Fresno County – $7,126
1058 Parksdale, California – Madera County – $7,129
1057 Earlimart, California – Tulare County – $7,169
1056 South Dos Palos, California – Merced County – $7,170
1055 Winterhaven, California – Imperial County – $7,220
1054 Shackelford, California – Stanislaus County – $7,250
1053 Palo Verde, California – Imperial County – $7,275
1052 Biola, California – Fresno County – $7,375
1051 Kettleman City, California Kings County – $7,389
1050 Arvin, California – Kern County – $7,408
1049 Coachella, California – Riverside County – $7,416
1048 Bret Harte, California – Stanislaus County – $7,481
1047 Traver, California – Tulare County – $7,642

References

* cite web | title=Rancho de Los Arcos | work=by Jocelyn Lippert, AmeriQuests - Vol. 1, No. 1 (2004) | url=http://ejournals.library.vanderbilt.edu/ameriquests/viewarticle.php?id=18&layout=html | accessdate=2005-08-02
* cite web | title=Regional Economic Accounts (interactive tables) | work=Bureau of Economic Analysis | url=http://www.bea.gov/bea/regional/gsp/ | accessdate=2005-08-17
* cite web | title=Rank Order - GDP | work=CIA - The World Factbook | url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2001rank.html | accessdate=2006-08-01
* cite web | title=Cal Facts 2006 California's Economy | work=California Legislative Analyst's Office | url=http://www.lao.ca.gov/2006/cal_facts/2006_calfacts_econ.htm#economy | accessdate=2007-06-19
* cite web | title=Top Countries Ranked by its Gross Domestic Product, California's World Ranking (.xls) | work=California Department of Finance | url=http://www.dof.ca.gov/HTML/FS_DATA/LatestEconData/Data/Miscellaneous/Bbrank.xls | accessdate=2005-08-17
* cite web | title=Chronology of Significant Events | work=California Department of Finance | url=http://www.dof.ca.gov/HTML/FS_DATA/LatestEconData/Chronology/chronology.htm | accessdate=2005-08-02
* cite web | url=http://www.bea.gov/newsreleases/regional/spi/2007/spi0307.htm | title=State Personal Income 2006 | work=Bureau of Economic Analysis, U.S. Department of Commerce
* cite web | title=California Visitor Statistics and Trends - 2004 Highlights (.pdf) | work=California Tourism | url=http://www.visitcalifornia.com/tourism/pdfs/T_RS_Highlights_2004.pdf | accessdate=2005-08-02
* cite web | title=California Agricultural Resource Directory 2006 | work=California Department of Food and Agriculture | url=http://www.cdfa.ca.gov/files/pdf/card/AgResDirEntire06.pdf | accessdate=2007-12-08

ee also

*California locations by per capita income
*California unemployment statistics
*World economy
*
*
*Comparison between U.S. states and countries by GDP (PPP)

External links

* [http://www.ca.gov/ California's homepage]
* [http://www.dof.ca.gov/DOF.asp California Department of Finance]
** [http://www.dof.ca.gov/HTML/FS_DATA/Fs_home.htm Financial & Economic Data]
** [http://www.dof.ca.gov/HTML/FS_DATA/LatestEconData/Data_home.htm Latest California Economic Data]
* [http://www.lao.ca.gov/ California Legislative Analyst's Office — California's Nonpartisan Fiscal and Policy Advisor]
** [http://www.lao.ca.gov/PubDetails.aspx?id=1206 Cal Facts: California's Economy and Budget in Perspective]
** [http://www.lao.ca.gov/PubDetails.aspx?id=1203 California's Fiscal Outlook: LAO Projections, 2004-05 Through 2009-10]
* [http://www.bea.gov/ Bureau of Economic Analysis — an agency of the U.S. Department of Commerce]
* [http://www.commerce.ca.gov/state/ttca/ttca_homepage.jsp?BV_SessionID=@@@@1721135033.1123005024@@@@&BV_EngineID=ccchaddfehgkllgcfngcfkmdffidfng.0&path=Commerce+%26+Economic+Development+Program California's Commerce & Economic Development Program]
* [http://www.visitcalifornia.com/state/tourism/tour_homepage.jsp California Tourism]
* [http://4cajobs.com/ California Commission for Jobs and Economic Growth]
* [http://ejournals.library.vanderbilt.edu/ameriquests/viewarticle.php?id=18&layout=html Rancho de Los Arcos — a well cited article about agriculture & economy]